Penalty amount u/s 122 (1) (ii)- 10000 or higher of 10K/100%

[SUSHIL BANSAL]

Dear Friends,

Penal provisions u/s 122 (1) (ii) are for issuing invoice without supply. My querry is whether the penalty amount will be 10000/- or higher of 10000 or 100% of tax evaded.As per my understanding in issuing invoice without supply there is no tax evasion as tax already paid by our client on such supplies. Further if the penalty amount to be Rs. 10000 only then whether this will be 10000 per such invoice or total 10000.Plz guide.

AI Summary

Penalty for issuing invoice without supply: fixed statutory sum or amount equivalent to tax-related measures, whichever is higher.
Penalty arises where a person issues an invoice without supply; the statute prescribes the statutory fixed amount or an amount equivalent to tax-related measures, whichever is higher. Debate focuses on whether tax evasion exists without supply and whether the alternative metric requires actual input tax credit to have been passed irregularly. Separately, the supplier faces penalty for issuing bogus invoices while the recipient may face tax, interest and distinct penalties for wrongful availment or utilisation of input tax credit, with evidentiary burden on the recipient and possible aggregation of penalties across tax heads.